Question

The insolvency loss at the time of dissolution of the firm is shared by the Solvent Partner's in their Profit-sharing ratio. (State True or False)

Answer 1

True

Partner share profit and losses

In there profit sharing ratio

Answer 2

It is true that the insolvency loss at the time of dissolution of the firm is shared by the Solvent Partner's in their Profit-sharing ratio.

Explanation:

• At the time of the dissolution, they divide the loss regarding to the ratio wise.
• If any case in the partnership firm both the profit and loss are shared in the ratio wise to their contribution of the capital in the partnership business, at the time of dissolution also they follow the same procedure between the solvent partners.